Paper Details

This study aims to examine the effect of internal control components on effectiveness of internal controlsystem of Peoples Bank in Sri Lanka. While strong internal control system establishes and practice in the banking sectorin Sri Lanka, there are indications of frauds and exploitations and corruptions. It is required to examine to what extendthe established internal control system is effectively practice. The study considered five independent variables suchControl environment, risk assessment, control activities, information & communication system and monitoring and adependent variable effectiveness of internal control system. Data was collected using structured questionnaire which wascirculated to bank branch managers who are more conscious in the practice of internal control system in banking sector.173 middle level bank branch managers’ contributed to the study. Descriptive statistics and inferential statistics wereused to analyze the collected data. The results revealed that there are significant and positive relationships among theinternal control components (such as control environment, risk assessment, control activity, information andcommunication system and monitoring) and effectiveness of internal control system and it revealed that the managementof Peoples Bank has recognized and practiced the strong internal control system.

C.T.Gamage, Low, Lock Teng Keving, “INFLUENCE OF INTERNAL CONTROL COMPONENTS AND EFFECTIVENESS OF INTERNAL CONTROL SYSTEM OF PEOPLES’ BANK IN SRI LANKA”, International Journal of Advance Engineering and Research Development (IJAERD), Vol. 5, Issue 10, pp. 227-233, October 2018.